Fission Uranium Corp. [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] said Thursday November 19 that it is ready to launch a feasibility study at its Triple R uranium deposit in Saskatchewan after raising $17.07 million from a bought deal offering.
“The Triple R deposit has the potential to become one of the lowest cost uranium mining operations in the world,” said Fission President and CEO Ross McElroy. “With a strengthened treasury now in place, and backed by committed, supportive shareholders, Fission is able to complete the transition from explorer to developer,” he said.
“Thanks to our environmental and social governance to date, as well as a robust prefeasibility study (PFS) using underground mining methods, we are in an excellent position for the next stage of project development. We will now continue building our operations team and will commence a feasibility study.”
Fission holds a 100% interest in the advanced high-grade, Triple R uranium deposit located on the southwestern edge of Saskatchewan’s Athabasca Basin, on Fission’s Patterson Lake South property.
In September, 2019, the company released the results of a pre-feasibility study (PFS) for an underground-only mining scenario at Patterson Lake South.
The company said the underground PFS follows the results of an earlier PFS report, which outlined a hybrid mine approach using both open pit and underground techniques.
Highlights from the earlier PFS report, which was released in April, 2019, envisaged average production of 15 million pounds of U3O8 annually during the first five years of production from mineral reserves of 90.5 million pounds of U3O8.
That scenario was based on initial CAPEX of $1.5 billion and operating expenditure of US$6.77 per pound. It envisaged a 4-year construction period and 8.2-year mine life.
The underground PFS highlighted a substantial reduction in CAPEX and time requirements for construction of the Triple R mine due to simplified water control measures for underground mining.
Meanwhile, the company said $17.07 million raised from the offering will be used to fund further developing at the Triple R uranium deposit and to repay certain amounts of a credit facility to Sprott Resources Lending Corp. and Sprott Private Resource Lending 11 (Collector), LP.